Case Law[2022] ZAGPPHC 733South Africa
Witwatersrand Estates Ltd v Century Property Developments (Pty) Ltd and Another (70603/2018) [2022] ZAGPPHC 733 (3 October 2022)
Headnotes
Summary: contract – specific performance – court’s discretion – final interdict – application for a mandamus in a contractual setting.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Witwatersrand Estates Ltd v Century Property Developments (Pty) Ltd and Another (70603/2018) [2022] ZAGPPHC 733 (3 October 2022)
Witwatersrand Estates Ltd v Century Property Developments (Pty) Ltd and Another (70603/2018) [2022] ZAGPPHC 733 (3 October 2022)
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sino date 3 October 2022
HIGH
COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
CASE
NO: 70603/2018
REPORTABLE:
NO.
OF
INTEREST TO OTHER JUDGES: NO.
REVISED.
DATE:
3 OCTOBER 2022
In
the matter between:
WITWATERSRAND
ESTATES LTD
Applicant
and
CENTURY
PROPERTY DEVELOPMENTS
(PTY)
LTD
First
Respondent
PRECINCT
RESIDENTIAL DEVELOPMENTS
(PTY)
LTD
Second
Respondent
Summary:
contract – specific performance – court’s
discretion – final interdict
– application for a mandamus
in a contractual setting.
ORDER
The
application is dismissed with costs, including the costs of two
counsel where employed.
J
U D G M E N T
This
matter has been in open court and otherwise disposed of in terms of
the Directives of the Judge President of this Division.
The
judgment and order are accordingly published and distributed
electronically.
DAVIS,
J
Introduction
[1]
Three large property
developers own neighbouring properties in the Kayalami Gardens area.
The properties fall in the jurisdiction
of the City of Johannesburg
(CoJ) and border on or have access to Allandale Road, a large
arterial road to the north of Johannesburg
with access to the N1
motorway. The Applicant, Witwatersrand Estates Ltd (WEL)
harbours apprehensions that the two respondents,
Century Property
Development (Pty) Ltd (Century) and Precinct Residential Developments
(Pty) Ltd (Precinct) are not honouring a
Servitude Agreement entered
into between WEL and the respondents’ predecessor and are
acting in breach of the terms of a
Notarial Deed of Restraint and
Servitude (the Notarial Deed) registered against the property from
which portions were subsequently
subdivided and which are now owned
by the respondents.
Relief
claimed
[2]
After an unsuccessful
attempt at reviewing a decision of the CoJ whereby an initially
approved mode of development (with which WEL
was satisfied) had been
amended (in case no 90490/18 in this court and in respect of which a
separate judgment had been handed
down on 9 June 2022), WEL now
persists with this application for interdictory relief. As will
become apparent hereinlater,
the nature of the relief (and not only
its terms) is central to the adjudication of this matter.
For
this reason the relief sought in WEL’s amended notice of
motion,
is quoted
here in full:
“
1.
Directing that the First and Second Respondents, being the registered
township owners of (i) Kyalami
Gardens Extension 27 (which was
established on a portion of the remaining extent of Portion 2 of the
farm Bothasfontein 408 J.R.,
and a part of the remaining extent of
portion 88 of the farm Bothasfointein 498 J.R) and (ii) Kyalami
Gardens Extensions 33, 35,
36 and 37 (“the property”) and
any township that may have been established thereon subsequent 20
October 2010, be compelled:
1.1
To
comply with the Servitude Agreement dated 26 August 2010 pertaining
to the limitation of development of the property; and
1.2
To
comply with the provisions and obligations set out in Notarial Deed
of Restraint and Servitude K02206/12S (the Servitude”)
pertaining to the future development, road network and land uses and
the positions thereof, as provided for in the said Deed registered
as
a praedial servitude against the title deed of the property, namely
Deed of Transfer T75612/12;
1.3
In
relation to the First Respondent only, to comply with the terms,
undertakings and warranties as provided for in an agreement
in
respect of the cancellation of the School Lease dated 8 July 2013.
2.
Directing that the Respondents be compelled to ensure that nay
development taking place on
the portion of the property owned by them
respectively complies, at any stage of the development, with –
2.1
The
Kyalami Centro Master Plan as defined in the Servitude; and
2.2
The
land uses and positioning thereof defined in Precinct Plan No
07/8004/T1/2010 approved by the City of Johannesburg on 20 October
2010, in phases 1-19 (“the Precincts Plan”), provided for
in the Centro Master Plan and the Precinct Plan and the decision
under which the township was established;
2.3
The
improvements and phases of the road network as defined the Centro
Master Plan and the Servitude Agreement.
3.
That the Respondent or any person or entity (authorised by the
Respondent) be prohibited,
with immediate effect, from commencing
with, proceeding any further or concluding, any building activities
on the property in contradiction
with the provisions of the Servitude
read with the Centro Master Plan and the Precinct Plan, as referred
to in prayers 1 and 2
above.
4.
That the First Respondent is prohibited from constructing, or
allowing the construction of,
or operation of a primary or secondary
school on the property within two kilometres of the farm Waterfall as
described in Title
Deed 26167/1934.
5.
That the Respondents pay the costs of this application on the
attorney and own client scale
”
.
[3]
Before it can be
determined whether any breach of the Servitude Agreement and the
Notarial Deed has occurred, the relevant terms
of these documents
must be determined. Despite the documents having been in
existence, in writing, for about a decade, there
is some dispute
regarding the terms thereof. The dispute resides in what
exactly constituted the extent of the development
(or restraint
thereof) to which the parties had agreed, with reference to a plan or
map.
The
Servitude Agreement
[4]
WEL was at all
relevant times the owner of a property initially known as the
Remaining extent of Portion 1 of the Farm Waterfall
5, Registration
Division IR Gauteng Province (the Waterfall property). It
consists of a substantial tract of land, bordered
on three sides by
Allandale Road, Waterfall Road (which is its main access road) and
the Jukskei River. From the plans, photographs
and diagrams
submitted by the parties, it appears to be a fully developed
township, with residential, business and leisure properties,
including a dam and a clubhouse. In the Servitude agreement, it
is referred to as the “servient land”.
[5]
The adjacent land,
then owned by Erf 51 Melville CC (Melville), consisted of a slightly
smaller, then undeveloped tract of land,
being the Remaining Extent
of Portion 2 of the Farm Bothasfontein 408, Registration Division JR
Gauteng. It was referred
to in the Servitude Agreement as the
“dominant land” and is known as the Mushroom Farm.
[6]
Although the Mushroom
Farm also borders on Allandale Road for the whole length of its
north-eastern border, convenient access (by
way of a junction) which
would satisfy the provincial and local authorities, would have had to
be made where the Mushroom Farm
and the Waterfall property meet at
their respective north-eastern and north-western corners.
[7]
In order to
facilitate the road junction, a servitude had to be granted over the
Waterfall property to the Mushroom Farm.
The Servitude area
consisted of an undeveloped and unused sliver of land, falling
outside the development on the Waterfall property.
It consisted
(and still consists) of a triangular piece of land, measuring in
total a mere 2007m².
[8]
Having regard to the
remainder of the tracts of land and the size of the developments
thereon, the servitude portion is insignificant
in size, but was
necessary at that stage for the approval of development on the
Mushroom Farm. It is for this reason, that
the parties embodied
the granting of the servitude in a written document, even prior to
its registration. The agreement imposed
certain obligations and
restrictions on Melville. The relevant terms contained in the
Servitude Agreement, dated 26 August
2010 provide the following in
this regard:
“
2.1
This Servitude Owner hereby and with effect from the Signature Date
grants to the Dominant Owner a praedial servitude
in perpetuity over
the Servitude Area for roads purposes and upon the further terms and
conditions contained in this Agreement.
2.2
The Servitude Area may be used solely for the construction of a
public road thereon.
2.3
The Dominant Owner accepts the servitude hereby granted.
3.1
immediately after the Signature Date withdraw all objection (if any)
which it may have lodged with any relevant authority
in respect of
any existing application by Servient Owner or any of its successors
in title to any portions of the Farm for the
establishment of a
township and/or rezoning and/or subdivision and/or consolidation
and/or any similar (in the widest sense) application
(“Planning
Application”) in respect of the Farm or any portion thereof;
3.2
not (and shall not encourage, solicit or induce any third party to do
so) object to any further and/or future planning
application by WEL
and/or any third party in respect of the Farm or any portion thereof.
4.
LIMITATION OF DEVELOPMENT
4.1
All future development of the Dominant Land shall be substantially in
accordance with the Kyalami Centro Master Plan subject
to such
amendments as may be reasonably required by any relevant authority
and/or the Dominant Owner and as may be approved of
by the Servient
Owner, which approval shall not be unreasonably withheld or delayed.
4.2
Without limiting the generality of the provisions of 4.1, no retail
development exceeding 30 000 (thirty thousand)
square meters of
bulk area shall be developed on the Dominant Land.
5.
ROADS
5.1
The Dominant Owner shall at its cost and expense and to the standard,
specification and phasing required by the relevant
authorities as
more fully appears from the Annexure 1, Annexure 2 and Traffic Impact
Assessment dated September 2008 attached hereto
as Annexure 4
”
.
[9]
In the definitions
contained in the Servitude Agreement, the “Kayalami Centro
Master Plan” referred to in clause 4.1
was defined as meaning
“
the
plan annexed hereto marked Annexure 1
”.
There was no annexure marked as such annexed to the agreement annexed
to the founding affidavit, which lead to a
huge debate as to what
that annexure entailed or whether it had even existed at the time of
the agreement. Adv Maritz SC
on behalf of Century was
particularly vocal about this point, arguing that the “true”
“Annexure 1” had
neither been identified nor produced.
[10]
Despite what the
respondents argued, they could not produce any other document which
they could contend was the “true”
annexure or the
“Kayalami Centro Master Plan”. On the other hand,
WEL was adamant that Annexure FA5 to its founding
affidavit was
indeed the Annexure 1 referred to in the Servitude Agreement.
WEL based its case on this proposition and that
is the case which
this court must adjudicate on.
[11]
Said Annexure FA5
also featured as annexure CL9 to Century’s answering affidavit
but on the lastmentioned annexure the different
phases of the
development were colour-coded to correspond to a table contained in
the annexure/s.
[12]
It is necessary to
describe the contents of these corresponding annexures, that is FA5
and CL 9. The plan is indeed titled
in bold capital printed
script “PROPOSED CENTRO KAYALAMI DEVELOPMENT INDICATIVE
DEVELOPMENT PHASES”. It depicts
Allandale Road on the
north-eastern boundary of Mushroom Farm and a junction which appears
to be partly on the 2007m² sliver
of land described above.
It depicts a proposed route of a road and subsidiary roads through
the proposed development, to
link up with a future provincial road
K73 running along the north-western border of the Mushroom Farm.
[13]
There are two blocks
of print imposed on the plan, the first is a “legend” and
the second depicts “Notes”.
The “Legend”
reads as follows:
“
LEGEND:
RECOMMENDED PHASING OF ROAD IMPROVEMENTS – ROAD NETWORK PHASES:
Phase
I Allandale road (K58) dual
carriage-capacity for 230 000m² GLA of development
generating
40% of the total expected trip generation. The upgrade needs to
be completed before any sites take occupation.
Phase
II K73 one carriage way including
a bridge across the Jukskei river. This road to
be completed
before development above 280 000m² GLA takes occupation.
This phase of road upgrades will provide sufficient
capacity for a
further 30% of development, i.e. 210 000m² GLA or development
generating 70% of the total expected trip generation.
Phase
III K73 one carriageway including the
Allendale/K73 intersection. This road needs to be
completed
before development above 490 000m² GLA or development generating
more than 70% of expected trip generation takes
occupation.
[14]
The “Notes”
read as follows:
“
1)
The order in which the phases are implemented can be amended with
approval from the Municipality.
2)
During the implementation of the development phases it must be noted
that the Allandale Road access
can only accommodate 280 000m²
development (or the equivalent traffic generation as detailed in the
Arup traffic impact study).
3)
Phases exceeding the 280 000m² bulk above should
incorporate the link and access to read
K73.
4)
Each development phase is responsible for the implementation of the
required internal road links
to connect the external road.
5)
The capacity provided on the internal road links should be in
accordance with the extent of phase
serval by the link
”
.
[15]
The plan is
identified at the bottom thereof as “PLAN6 (Revision 05) ACCESS
TO PROPOSED TOWNSHIP KAYALAMI GARDENS ENTENSION
27”.
Notarial
Deed
[16]
The “NOTARIAL
DEED OF RESTRAINT AND GRANT OF SERVITUDE” registered on 15
December 2012 as R02206/12 provides as follows:
“
WHEREAS
Melville CC requires access to and the use of portion 1 Waterfall for
roadway purposes AND WHEREAS WEL has agreed to grant
to Melville CC a
servitude in perpetuity to gain access to and use of Portion 1 of
Waterfall for roadway purposes … NOW
THEREFORE THESE PRESENTS
WINESS:
RESTRAINT:
1.
THAT
the servitude agreement dated 26 August 2010 (a copy of which is
filed in the protocol of the notary executing this Deed) (the
“Principal Agreement”) entered into between inter alia
WEL and Melville CC, remains binding on the said parties and
their
successors in title and that this servitude is in addition to and not
in substitution of such Principal Agreement.
2.
THAT
Melville CC has withdrawn all objections which have been lodged by
Melville CC with all relevant authorities in respect of
any existing
application, made by or on behalf of WEL or WEL’s
successors in title assigns, for the establishment of
a township
and/or rezoning and/or subdivision and/or any other similar
application (which application is to be interpreted in its
widest
sense) on, in or over Portion 1 Waterval including such portions of
the property originally acquired by WEL which have since
been
subdivided and/or transferred by WEL or WEL’s successors in
title and assigns to any third party.
3.
THAT
Melville CC shall not object to any future applications for the
establishment of a township and/or rezoning and/or subdivision
and/or
any other similar application (which application is to be interpreted
in the widest sense), as contemplated in clause 2
above, brought by
WEL or WEL’s successors in title and assign and in addition
thereto Melville cc agrees not to encourage,
solicit or induce any
third party to lodge such objection.
4.
THAT
all future development on, in or over Portion 2 Bothasfontein shall
be substantially in accordance with the Kyalami Centro
Master Plan,
subject to such amendments as may be reasonably required by any
relevant authority and/or Melville CC and as may be
approved of by
WEL, which shall not be unreasonably withheld or delayed. In
addition thereto no retail development exceeding
30 000 (thirty
thousand) square metres of bulk area shall be developed on Portion 2
Bothasfontein.
5.
THAT
condition 3 and 4 above be recorded against the title deed of Portion
2 Bothasfontein and shall be binding on the successors
in title and
assigns of Melville CC as owner of Portion 2 Bothasfontein.
GRANT
OF SERVITUDE OF RIGHT OF WAY
6.
THAT
WEL hereby gives and grants to Melville CC, its successors in title
and assigns of Melville CC as owner of Portion 2 Bothasfontien.
A perpetual right of way and use over a portion of Portion 1 Waterval
indicated by the figure ABCDA, measuring 2007 (two thousand
and
seven) square meters as indicated on diagram SG No. 4560/2010
(attached hereto) (hereinafter referred to as the “Servitude
Area”) with the right to Melville CC to use the Servitude Area
in perpetuity for roadway purposes.
7.
THAT
the public roadway within the Servitude Area shall be constructed by
or on behalf of Melville CC and in accordance with the
standards
specification and phasing required by the relevant authority and as
agreed between the parties in terms of the Principal
Agreement.
8.
THAT
the cost of constructing the roadway shall be for the account of
Melville CC.
17.
THAT
there shall be no consideration payable by Melville CC to WEL for or
in respect of the rights hereby granted.
18.
THAT
Melvile CC shall be obliged to proceed with the construction of the
roadway in accordance with the provisions of clause 5 of
the
Principal Agreement
”
.
Subsequent
events and alleged breaches
[17]
In 2017 Century,
having bought the Mushroom Farm from Melville, applied for and
obtained approval from the CoJ to amend the initial
precinct plan for
the development. The amendment was made in terms of the Town
Planning & Townships Ordinance 15 of 1986
and the Johannesburg
Metropolitan Municipality Spatial Planning and Land Use Management
Bylaw 2016. The precinct plan which
was amended was a plan
previously approved by the CoJ as a Precinct Plan in respect of Erf 3
of Kayalami Gardens Ext 27 on 30 October
2010. This original
Precinct Plan, together with the approval for development of a
township on the Mushroom Farm provided
inter alia for division of the
township into four erven and 19 “precincts” and 30 000m²
land use area for shops
and 525 000m² of residential buildings.
It also provided for a place of instruction, but I shall deal with
this topic
separately later. The total developmental area was
745 000m². It also provided for “open space areas”.
[18]
The amendment to the
Precinct Plan approved by the CoJ in 2017 provided for division of
the township into 22 erven and 10 “precincts”
or phases.
The configuration of the internal roads were amended and their width
was increased in accordance with requirements
imposed by Gautrans and
the Johannesburg Roads Agency (JRA). The extent of open space
area was also substantially increased,
resulting in a decrease of the
development land. Further requirements imposed by the CoJ
reduced the developable floor area
to 590 500m². the
amendment also provided for the subdivision of the Mushroom Farm into
Kayalami Gardens Extensions
34 to 43.
[19]
The commencement of
construction and earthworks relating to the development approved in
terms of the amended Precinct Plan, stated
in February 2018 on
Extension 34. At the time of hearing of the interdict
application, it was common cause that all the “internal”
bulk services, including water-,sewage and electrical reticulation
and other works relating to the road network, both in relation
to
connecting roads, junctions and internal roads save for the proposed
K-73, had been completed. The development of Extensions
34 and
35 had also been completed. This was done by Precinct (who had
in the meantime become the owner of these to parcels
of land) at a
cost of some R 600 million.
[20]
WEL had two principal
objections to the commencement and continuation of the developments
in terms of the 2017 CoJ approved amended
Precinct Plan by both
Century and Precinct. The first principal objection was that
the amendment was approved by the CoJ
without notice to or
participation by WEL. The legality of the administrative action
by the CoJ, who had argued that the
amendment had no external effect
did not amend any roads on junctions beyond that which had originally
been approved in 2010 and
was in any event in accordance with the CoJ
spatial planning for the area, had been dealt with in the separate
review application
launched by CoJ under case no 70603/2018 in this
division as referred to in paragraph 2 above. That objection is
therefore
no longer alive.
[21]
The second principal
objection was that the construction and development in terms of the
amended Precinct Plan were done or are
being done in breach of the
Servitude Agreement and the Notarial Deed and without WEL’s
consent.
[22]
Regarding the terms
of the Servitude Agreement which WEL says are breached by the
respondents, WEL’s case is set out as follows
in its founding
affidavit:
“
17.3
In terms of clause 4.1 [of the servitude Agreement [all future
development of the Mushroom Farm should be substantially in
accordance with the Kayalami Centro Master Plan … (the
annexure to the servitude agreement) subject to such amendments as
may be reasonably required by any relevant authority and/or the owner
of the Mushroom Farm which had to be approved by the Applicant
(WEL)
which approval the Applicant would not unreasonably withhold or delay
…
18.
I draw the court’s attention specifically to the Annexure to
the Servitude Agreement, the Centro Master
Plan. The Centro
Master Plan focuses not only on the phasing and the extent of the
relevant road upgrades bordering the Mushroom
Farm, but also on the
mixed-use nature of the development with dispersed offices, retail
spaces and residential spaces which does
not resemble an office park
or a shopping centre. What is important about the Centro Master
Plan is that it was prepared
with reference to the proposed layout
and land use area usage depicted in the Precinct Plan which was
approved by the CoJ two months
later …
19.
The Centro Master Plan relate to the same layout as can readily be
seen when the documents are compared …
20.
Whereas the Centro Master Plan describes the road network phases, the
Precinct Plan describes the area of
land usage for each phase
contained in the diagram, the road improvements were controlled by
way of different stages wherever it
was obliged to be completed on
the Mushroom Farm. It is apparent from the Precinct Plan
that the underlying concept
of the development was a mixed-use
development in that very few of the phases or erfs are exclusively
designated to be residential
or offices or shops. Rather, by
and large, each phase or erf contains a mixed use of residential,
shops and/or offices …
”
.
[23]
The same allegations
are made in respect of the Notarial Deed:
“
In
terms of clause 4, all future development on the Mushroom Farm shall
be substantially in accordance with the Centro Master Plan,
subject
to such amendment as may be required by any relevant authority and/or
Melville CC, and which have to be approved by the
Applicant, which
approval shall not be unreasonably withheld or delayed. In
addition thereto, no retail development exceeding
20 000 square
meter of bulk area shall be developed on the Mushroom Farm.
Most importantly, the Centro Master Plan depicted
a mixed use
dispersed development, as more fully described in 20 above
”.
[24]
WEL relies on the
contents of a brochure which it claims came into its possession
during June 2018, promoting the development of
the Mushroom Farm as
“the Precinct”. It contains a “Micro
Locality” plan which WEL compared to the
Kayalami Centro
Master Plan and the (initial) Precinct Plan. This led WEL to
aver as follows:
“
33.1
The road layout within the Mushroom Farm has been altered drastically
33.2
The
layout in the Micro Locality does not mirror the division of the area
into precincts as depicted in the Centro Master Plan.
Nor does
it mirror the division of the area into erfs as shown on the Precinct
Plan.
33.3
The
Micro Locality depicts various areas for use as exclusively
residential retail or offices contrary to the Precinct Plan.
33.4
Furthermore,
there is an area designated for a school building in the middle of
the Mushroom Farm, contrary to the Cancellation
Agreement”.
Subject to such amendments as may be required by any relevant
authority and/or Melville CC, and which have
to be approved by the
Applicant, which approval shall not be unreasonably be withheld or
delayed. In addition thereto, no
retail development exceeding
30 000 square meter of bulk area shall be developed on the
Mushroom Farm. Most importantly,
the Centro Master Plan
depicted a mixed use dispersed development, as more fully described
in 20 above
”
.
[25]
WEL’s case is
further that, as a quid pro quo for granting the servitude to the
adjacent dominant land, development thereon
would be restricted so as
not to compete directly with WEL’s development of its own land.
[26]
Conceding in its
replying affidavit that the “servitude Agreement does not refer
to the Precinct Plan”, WEL contended
nevertheless that “
the
Applicant’s case hinges firstly, and most importantly, on the
fact that the Respondent is already in breach of its obligations
arising out of the Servitude Agreement. Fundamentally this case
is based on an assertion that the subject properties are
that differs
fundamentally from the Centro Master Plan, read together with the
Precinct Plan
”.
[27]
The above allegations
were made prior to Precinct having been joined. After that had
occurred, WEL further alleged that Precinct
is not only bound by the
restraints imposed on Melville and subsequently on Century, but that
it has also breached those restraints.
After the joinder, WEL
maintained that “
the
servitude was concluded in circumstances where the Kayalami Centro
Master Plan reflected the same obligations and layout as
the final
Precinct Plan for Extension 27”
and
“
as
mentioned in affidavits filed of record, the evil that the Applicant
seeks to prevent is to stop Century (and Precinct) from
erecting a
multi-use development in competition with the multi-use development
that have been constructed on the Waterfall Farm
(WEL’s land).
The loss of revenue created by such competing development is almost
impossible to qualify and the suggestion
that the Applicant would
have an alternative claim for damages, is opportunistic. The
2010 Precinct Plan defined the mixed
use in erven 1 – 5 which
regulated the development in these precincts. Century failed to
adhere to these development
controls which it was contractually
obliged to do … “
and”
…
the
Applicant seeks no more than that the development of the Precincts
properties complies with the development restrictions imposed
by the
Notarial Deed, read with the 2010 Precinct Plan
”.
Evaluation
[28]
The first issue to be
decided is whether the 2010 Precinct Plan formed part of the
Servitude Agreement and the Notarial Deed.
This is what WEL
contends. The first point to be noted that the Precinct Plan as
such is not mentioned in either document.
The reason why it
could not mentioned in the Servitude Agreement is because that
agreement pre-dated the approval of the Precinct
Plan. This
much is conceded by WEL. However, WEL argues, in supplementary
Heads of Argument delivered on its behalf,
that:
“
The
servitude agreement was informed by the land use rights and the
placing thereof which was at that stage in the process of approval
and reflected in the then pending township development process of
Extension 27. The difference between the Kayalami Centro
Plan
and the 2010 Precinct Plan is the purpose they served and the
information that is reflected therein. The Kayalami Centro
Master Plan deals with the development phases of the development over
the land in respect of road improvement and access and was
directly
linked to the 2010 Precinct Plan which deals with different land
uses, positioning of the land uses and the development
controls
thereof which bound the parties and restricted Century in their
development rights
”.
[29]
These submissions do
not assist in answering the question as to why, if WEL sought to
limit the respondents and their predecessor
Melville, in the fashion
contended, no such limitation featured in the agreement. The
Kayalami Centro Master Plan was at
that stage, in the same manner as
the proposed Precinct Plan, still part of the development process to
be approved by the CoJ.
Nothing therefore would have prevented
the parties, if that had been their intention, to incorporate a draft
plan or indeed the
Precinct Plan submitted to the CoJ for approval,
into the Servitude Agreement. Nothing also prevented them from
otherwise
delineating those restrictions which WEL now contends for,
in the agreement. This could have been made subject to approval
by CoJ or, if not approved, as applicable only inter partes.
[30]
The explanation as to
why the Precinct Plan could not have been annexed to or incorporated
in the Servitude Agreement, does not
hold water in respect of the
Notarial Deed, which was registered only in 2012, that is after the
Precinct Plan had already been
approved. WEL, when explaining
which of the annexures to its founding affidavit actually constituted
“Annexure 1”
to the Servitude Agreement, had access to
the notary and the protocol containing the servitude documents.
Notably, despite
this access, the Precinct Plan, did not feature as
an annexure.
[31]
Of crucial importance
is the absence of a claim for rectification for inclusion of either
the Precinct Plan or its contents into
either the Servitude Agreement
or the Notarial Deed.
[32]
In
an attempt to meet these deficiencies, WEL sought to rely on the
interpretational aids
[1]
to be
gleaned from the “context” existing at the time when the
Servitude Agreement was concluded. For this purpose
WEL
referred to a “sheaf” of correspondence exchanged between
the parties at the time. Rather than confirming
any negotiation
or agreement regarding restrictions or restraints to be placed on the
nature and extent of the development on the
Mushroom farm, the
correspondence centered around the maximum traffic volumes at the two
entry points to the development, i.e.
the junction with Allandale
Road and the K-73 respectively. I give one example hereof,
contained in a letter from the director
of Atterbury Properties (one
of the negotiating parties) to WEL dated 25 February 2021: “
Thank
you once again for meeting re the above matter [identified as
“Waterfall – Servitude for Mushroom Farm”]
…
on 11 February 2010. We wish to confirm the salient aspect of
our discussion during the meeting to be as follows:
1.
Mushroom
Farm (Kyalami Ext 70) did not notified the owners of Waterfall land
as the direct adjacent land neighbours when submitting
their
application for township establishment. Hence no opportunity
was granted to comment or object.
2.
Waterfall
owners (Mia’s & Atterbury) obtained a copy of the T.I.S of
the Mushroom Farm. Waterfall have serious reservations
re the
road infrastructure upgrading proposed by the T.I.S.
3.
The
owners of the Mushroom Farm is seeking to obtain a right of way
servitude over a certain portion of the Waterfall land in order
to
bet access off Allandale Rd.
4.
Mushroom
Farm owners & Waterfall owners met some time ago during 2009 and
agreed that a right of way servitude may be granted
subject to an
agreement be reached re the upgrading of road infrastructure.
5.
Waterfall
drafted such an agreement and submitted same to JRA for comments.
JRA objected against the principles of the draft
agreement and
advised that an alternative access may be granted for the owners of
the Mushroom Farm. A draft order copy of
this agreement was
submitted to you during our meeting.
6.
Waterfall
owners appealed to Joburg Planning – your office – to
withheld the approval of the Mushroom farm township
application until
such time that an amicable agreement is reached with the Mushroom
Farm owners.
7.
Waterfall
owners are having a further follow up with representatives of JRA
tomorrow re inter alia the above matter and hope to
have a resolution
on this matter soon.
We
trust the above to be a true reflection of our discussion and we
shall be keeping you posted with any progress made.
Your
faithfully
Coenie
Bezuidenhout
”
.
[33]
One of the last
correspondences, dated 26 July 2010, prior to WEL (or its holding
company) agreeing to the Servitude Agreement,
annexed a traffic flow
report from Arup Transport Planning. It dealt with trip
generation, traffic volumes and road upgrades
and recommended that
“
road
network construction phases that correspond to the establishment of
40%, 20% and 100% of the development respectively are provided
in the
attached Plan 6 (Rev 4) … it was concluded that if the
above recommendations are adhered to, Atterbury Properties
and
Century properties will grant the servitude access to Kayalami
Gardens Ext 27
”.
The response from the WEL side was “
Thank
you for the feedback. Only WEL and WII are signatures to the
agreement and we have written confirmations from both Atterburg
and
Century that we may proceed to sign the agreement
”.
Nothing was said about the Precinct Plan or any “limitations”
or “restrictions” on the development.
One may be
reminded that the Kayalami Centro Master Plan was revision 5 of Plan
6 and nor revision 4 as referred to in this correspondence
but, on
the evidence, nothing turns on this. The point remains that the
only restrictions contained in the “sheaf”
of documents,
were those relating to traffic flows and roads as quoted in paras
12-15 above. There are no other references
in any of the
documents that lead to an incorporation of the 2010 Precinct Plan,
even by refenrece.
[34]
I therefore find that
the case sought to be made out by WEL for the incorporation of the
2010 Precinct Plan or any restrictions
pertaining to development
contained therein into either the Servitude Agreement or the Notarial
Deed is not supported by the evidence
and cannot be sustained,
despite any interpretational exercise proposed by WEL.
[35]
The next question to
be answered is then whether the construction and development of the
Mushroom Farm, although it may be lawful
as far as the CoJ and
compliance with all statutory prescripts are concerned, still amount
to a breach of the Servitude Agreement
and the Notarial Deed.
This would entail a determination of whether the current construction
and development are “substantially”
in accordance with
the Kayalami Centro Master Plan as provided in par 4.1 of the
Servitude Agreement and par 4 of the Notarial
Deed.
[36]
In order to
facilitate a comparison, as far as roads go, between the Kayalami
Centro Master Plan and the 2017 Precinct Plan (which
reflects the
current development), the roads depicted on the former were
superimposed on the latter. This was done by way
of a colour
diagram prepared by Century. This incidentally also facilitated
a comparison between the precincts depicted on
the Kayalami Centro
Master Plan (and the 2010 Precinct Plan referred to earlier) and the
2017 Precinct Plan.
[37]
The differences are
principally the following: The Kayalami Centro Master Plan provided
for a junction of the “Mushroom Farm
Road” with Allandale
Road at the north eastern corner of the Mushroom Farm (where the
servitude sliver of land referred to
earlier is utilized) and then
proceeded to provide for two grid-like sets of internal roads,
serving all 19 proposed precincts
depicted on the 2010 plan before
linking up via a traffic circle and a further road to the K-73 on the
north western side of the
Mushroom Farm. The 2017 Precinct Plan
has retained the junctions at Allandale Road and the K-73 but the
grid of internal
roads has been somewhat limited by way of more
simplistic access to the proposed precincts which will now be
developed in 10 phases.
In total, four “spheres” of
the grids have fallen away while the road width has increased and two
internal traffic
circles have been added.
[38]
Do these differences
amount to “substantial” changes? I think not: the
external exit points and points of access
to the Mushroom Farm have
remained unaltered. The internal roads have been amended to
comply with the JRA requirements and
the widening of an internal road
can hardly be viewed as a “substantial” amendment.
The access to the phases
were at all relevant times in both plans
simply a means of accessing each phase or precinct in the most
convenient and practical
way and this principle has been retained.
The simplification of the internal roads amount to an almost
imperceptible amendment,
particularly when viewed from outside the
Mushroom Farm and in any event, it has no external effect.
Where the road traffic
volumes, on which the Servitude Agreement and
the Notarial Deed had been based, had remained unaffected (or
possibly been decreased),
the 2017 Precinct Plan and the development
in accordance therewith cannot be found to constitute a “substantial”
deviation
from the Kayalami Centro Master Plan. Construction in
terms thereof therefore does not amount to a breach and neither had
it been necessary to seek WEL’s approval.
[39]
If I were to be wrong
about the exclusion of the 2010 Precinct Plan from the Servitude
Agreement or the Notarial Deed or, even if
it remains excluded, can
it be found that, in addition to the issue of roads already dealt
with in paragraph 38 above, the current
development is in breach of
the terms of the Servitude agreement or the Notarial Deed in that it
is not in “substantial”
accordance with the depiction of
precincts (or the uses of land contemplated therein) which may
possibly be extracted from the
Kayalami Centro Master Plan?
This is what WEL’s argument quoted in paragraph 22 above
contemplates.
[40]
As
already indicated Kayalami Centro Master Plan depicted 19
“precincts”. This word was used by the parties
interchangeably
with erven, phases or even townships. This
depiction was done without reference to zoning types or developable
areas.
These kind of details only appeared on the 2010 Precinct
Plan. But even if one were to extract this detail from the 2010
Precinct Plan and impose it on the Kayalami Centro Master Plan, and
consider, apart from the issue of roads already described above,
the
remaining features and compare them with the 2017 Precinct Plan, the
only real difference is that 19 precincts have now become
10
precincts. The maximum developable floor area for maximum bulk
area of 30 000m² contained in the Servitude Agreement
has been
retained. The CoJ has found that the amendment has no negative
external effect on neighbouring properties or the
area as a whole.
Even if one were to ignore this view expressed by the CoJ, the
evidence placed before the court by Century
by way of an affidavit by
a registered professional town planner (Dacomb) has to be weighed
up. Although this evidence has
been supplied in a replying
affidavit to its initial counter-application by Century and therefore
it may not conveniently fit into
the application of the
Plascon-Evans-Rule
[2]
, the town
planner’s expertise has not been doubted in subsequent
affidavits filed by WEL and his factual evidence is corroborated
by
documents filed of record. I find no cogent reason to discard
his evidence. He inter alia concluded the following
after
reference to the detail contained in the Kayalami Centro Master Plan,
the 2010 Precinct Plan and the 2017 Precinct Plan:
“
35.
When the 2010 Precinct Plan is compared to the alleged Kyalami Centro
Master Plan which the Applicant relies on,
it is evident that there
is a vast difference in the detail denoted on each plan, with the
2010 Precinct Plan as approved by the
municipality, containing
detailed information with regard to the intended use of each
developable land parcel (precinct) (either
a combination of land use
hypologies or single use components).
36.
This distinction is important when regard is had to the allegation by
the Applicant that, what had been approved
by the municipality with
regard to the 2017 precinct plan and, by Extensions 34 and 35,
somehow conforms to what the Applicant
describes as a “multi-use
development”, as opposed to his preferred “mixed use
development”, ostensibly
denoted on the Kyalami Centro Master
Plan. As is evident from the explanations above, and with due
regard to the Kyalami
Centro Master Plan, there is no indication on
such master plan of any mixing of land use typologies nor a
quantification thereof
and such submissions made by the Applicant
seem to have no merits.
42.
The amendments reflected in the 2017 precinct plan were of an
internal nature (confined to the layout of road
reserves within the
boundaries of Extension 27 whilst reducing the developable floor area
by a considerable margin) and, as a result,
would not be expected to
have any material impact on the receiving environment beyond the
boundaries of the township, including
the development and interest of
the Applicant as an adjacent land owner and property developer.
The amendments can in my
view therefore be regarded as being
substantially in accordance with the Kyalami Centro Plan.
43.
In fact, the 2017 precinct plan and the subsequent amendment of the
municipality’s decision with regard
to Extension 27 brought
about a decrease in the approved land use zoning rights cap from 695
000m² in floor area to 675 000m²
(a reduction of some 20
000m²).
44.
Such a reduction may be expected to reduce the possible impact of
such development on the receiving environment,
including the
interests of the Applicant as an adjacent land owner.
Furthermore, such a substantial reduction in developable
floor area
may be expected to lessen any competition which may exist between the
developments of the Respondent and the Applicant.
48.1
Whereas the 2010 precincts plan indicated more and wider notional
road reserves (separating the individual proposed precincts or
developable land parcels), the 2017 precinct plan illustrates
proposed
road reserves which are of lesser extent (both in reserve
width and length). The position and alignment of the main road
reserved and thoroughfares and parts of access to external perimeter
roads (all internal to the boundaries of Extension 27) remained
largely unchanged.
48.2
By reducing the width of the internal road reserves in the
2017
precinct plan, it had the effect of enlarged the developable land
parcels of the individual precincts which were to take access
from
the internal road system. Consequently the position,
configuration and general shape of each of the individual precincts
(developable land parcels) reflected on the 2010 precinct plan are
the absence of internal road reserves in places although developable
floor- area were substantially reduced by increased open space areas.
48.3
In the 2010 precinct plan a total of 19 precincts or subdivided
land
parcels (parts of the larges Erf 3) are reflected. In the table
described as “Area of Land Use” on the 2010
precinct
plans, the second column thereof reflects the land area with regard
to each on the 19 Precincts, and an indication of
the mix of land use
typologies envisaged on each.
48.4
When the 2017 precinct plan is considered, it is evident that
it only
provided for 10 precincts or developable land parcels, albeit that
the main points of entry to the subject property remained
unchanged
and the perimeter boundary of the larger township boundary remained
unchanged.
48.5
Of importance is the fact that in combination, the developable
floor
area with regard to the 10 precincts or developable land parcels
depicted on the 2017 precinct plan rendered 675 000m²,
as
opposed to what had been originally approved by the municipality viz
a viz the 2010 precinct plan namely 695 000m².
notwithstanding the difference in the internal layout of the proposed
road systems reflected on the two precinct plans, it is evident
that
what was previously approved with regard to the larger Extension 27
(i.e. 695 000m² of floor area) was effectively reduced
to 675
000m², whilst the combination of land use components envisaged
for the larger development (the mix of land uses) remained
substantially unchanged save for an increase in open space areas.
48.6
Following the approval of the 2017 precinct plan, the division
of
Extension 27 into the different independent township extensions
namely Extension 34 up to and including 43 resulted in Extensions
38
up to and including 43 (a total of 6 separate township extensions)
accounting for approximately 80% of the developable floor
are which
may be considered to be exclusively for mixed use purposes.
Extensions 34 up to and including 37 (a total of 4
township
extensions) account for approximately 20% of the developable floor
area and is largely residential in nature.
49.
Upon consideration of the aforegoing there can form a Town Planning
perspective be no basis on which these
amendments could be described
as being material in nature
.
[41]
Based on the above, I
find that the respondents have not breached the terms of the
Servitude Agreement or the Notarial Deed, even
if the two Precincts
plan are used as a method of comparison. The town planner
reached the same conclusion, even having taking
into account WEL’s
argument about so-called “mixed use” area.
[42]
To sum up thus far, I
conclude that:
(a)
The 2010
Precinct Plan did not form part of the Servitude Agreement or the
Notarial Deed and neither were its contents incorporated
therein.
(b)
The relevant
plan applicable to the Servitude Agreement and the Notarial Deed was
the Kayalami Centro Master Plan reflected as Annexures
FA5 and CL9.
(c)
The
development and construction by Century and Precincts are not
substantially different from the roads and restrictions reflected
in
the Kayalami Centro Master Plan and therefore not in breach of the
Servitude Agreement or the Notarial Deed.
(d)
Even if the
conclusion in (a) were to be wrong or even if the contents of the
Kayalami Centro Master Plan relating to precincts
were to be
extrapolated to accord with the 2010 Precinct Plan then the
construction and development in accordance with the 2017
Precinct
Plan would still not be so substantially different to constitute
breaches of the Servitude Agreement and the Notarial
Deed.
The
school issue
[43]
In the brochure
obtained by WEL, the impression was created that Century (and/or
Precinct) might construct or operate a school on
the Mushroom Farm.
Were this to be the case, it would constitute a breach of yet a
further agreement reached between WEL
and Century, regarding the
possible construction of a school. This agreement was referred
to as the “Cancellation Agreement”.
[44]
The Cancellation
Agreement was concluded on 5 July 2013. In it, the parties
thereto agreed that Century “…
shall
not construct (or allow to be constructed) or operate (or allow to be
operated) a Primary (Grades 1 – 7) or Secondary
(Grades 8 –
12) School on the Mushroom Farm property …
”.
In terms of clause 5.2 of the Cancellation Agreement, Century
undertook to bind all future purchasers to this restriction.
[45]
The representation
contained in the brochure referred to earlier which came into WEL’s
possession, which might have created
a fear that this restriction
might be breached, was due to an architect’s impression
expressed in the brochure pertaining
to a “place of
instruction”. In the letter from Century’s
attorneys dated 27 June 2018 (referred to earlier
and which also
featured prominently in the review application under case no 90490/18
already mentioned above) it was confirmed
that “…
no
school development is envisaged by the respondent in terms of any
“place of instruction” land use rights
”.
This intention has expressly and repeatedly been confirmed in the
affidavits subsequently delivered by Century.
Factually also,
there is no evidence that any construction of any school is taking
place or is envisaged. Precinct has completed
the development
of Extensions 34 and 35 and no school has been constructed on those
parcels of land. The further portions
intended to be developed
by Precinct are Extensions 36 and 37. These will contain 716
residential units and no construction
of any school has been approved
by the CoJ in these two extensions.
[46]
In my view there
appears to be no reasonable apprehension justifying the granting of
an interdict against either of the respondents
regarding the
construction of a school as contained in the relief sought by way of
WEL’s amended notice of motion, irrespective
of any finding on
the remainder of issues.
Specific
performance
[47]
Even if I were wrong
in respect of the conclusions reached regarding the exclusion of the
“limitations” introduced by
the 2010 Precinct Plan (or
the interpretation regarding the absence of such limitations in the
Kayalami Centro Master Plan) and
wrong as to whether the 2017
Precinct Plan and the construction and development in terms thereof
constitute “substantial”
deviations or not, one still has
to consider whether the relief claimed ought to be granted in the
circumstances of this case insofar
as the relief amount to a claim
for specific performance. Although the relief is couched in the
form of an interdict, ostensibly
aimed at preventing a breach of
contractual terms, upon a reading of the affidavits delivered on
behalf of WEL, it appears that
WEL seeks the demolition of existing
works and an alignment thereof with the pre-amendment plans.
This amounts to nothing
other than an enforcement of a contract by
way of a claim for specific performance.
[48]
It
is trite that a court has a discretion to grant or refuse an order
for specific performance in appropriate circumstances
[3]
.
There are no hard and fast rules as to what appropriate circumstances
may be, but the starting point seems to be a comparison
of the
consequences of either granting or refusing such an order and which
of the two options would lead to an “unduly harsh”
result
[4]
.
[49]
In the present case,
Extensions 34 and 35 have been completely developed. This was
done at the cost of approximately R600
million and comprise 672
residential units. All these units are occupied.
Extensions 36 and 37 have also been approved
in terms of the existing
town planning scheme. These townships will comprise a further
715 residential units. The groundworks
already completed cost
some R36 million and construction agreements of some R163 million
have already been concluded, accommodating
approximately 267 workers
on site daily. The aggregate costs of this part of the
development amounts to R 248 million and
the daily operational costs
of Precinct amount to R 2 million per day. WEL denies that the
halting and setting aside of these
developments, the roads (both
access and internal) and the entire currently existing cadastral
existence of the township (all duly
registered in the offices of the
Registrar of Deeds and the Office of the Surveyor General) would be
as “cataclysmic”
as the respondents claim, but the sheer
extent thereof renders this denial somewhat hollow. On the
other hand, the perceived
apprehension of loss to be suffered by WEL
which may result from the competing development on the Mushroom Farm,
has nowhere been
identified with any measure of certainty. WEL
alleges that it might be impossible to calculate and that may be so,
but the
nature thereof has not even been explained.
[50]
In the circumstances
of this case, I find that is an appropriate case where a court should
exercise its judicial discretion by declining
to order specific
performance, particularly in the somewhat vague and far-reaching
fashion in which it has been claimed by WEL.
[51]
It follows that the
application should be dismissed. The further result hereof is
that Century’s conditional counter-application
(for a mandamus
that WEL considers granting consent to the amendments brought about
by the 2017 Precinct Plan), need not be entertained.
In respect
of the incidence of costs, I find no cogent reason to depart from the
general principle that costs should follow the
event.
[52]
Order
The
application is dismissed with costs, including the costs of two
counsel, where employed by the respondents.
N
DAVIS
Judge
of the High Court
Gauteng
Division, Pretoria
Date
of Hearing:
29
August 2022
Judgment
delivered:
3 October 2022
APPEARANCES:
For
the Applicant:
Adv.
L.G. F Putter SC together with
Adv.
H. V Vorster
Attorney
for Applicant:
Faber
Goërtz Ellis Austen Inc., Bryanston
c/o
John Broido Attorneys, Johannesburg
For
the 2
nd
Respondents:
Adv.
M. C
Maritz SC together with
Adv.
J. A Venter
Attorney
for 2
nd
Respondents:
Adriaan
Venter Attorneys,
Pretoria
For
the 3
rd
Respondents:
Adv.
M C Erasmus SC together with
Adv.
D. J van Heerden
Attorney
for 3
rd
Respondents:
Weavind
&
Weavind Attorneys, Pretoria
[1]
Affirmative
Portfolios CC v Transnet t/a Metrorail
[2008] ZASCA 127
;
2009
(1) SA 196
(SCA) at
[15]
and
Natal
Joint Municipal Pension Fund v Endumeni Municipality
2012 (4) SA 593
(SCA) at [18] and [19] and
University
of Johannesburg v Auckland Park Theological Seminary
2021 (6) SA 1
(CC).
[2]
Plascon-Evan
Points Ltd v Van Rebeeck Paints (Pty) Ltd
[1984] ZASCA 51
;
1984 (3) SA 623
(A) at 634E – 635D and
NDPP
v Zuma
[2009] ZASCA 1
;
2009 (2) SA 277
(SCA) at
[26]
.
[3]
See:
Hagnes
v King Williamstown Municipality
1951 (2) SA 371
(A) at 398: “
although
a court will as far as possible give effect to a plaintiff’s
choice to claim specific performance, it has a discretion
in a
fitting case to refuse to decree specific performance and leave the
plaintiff to claim and prove his id quod interest
”.
See also
Benson
v SA Mutual Life Assurance Society
1986 (1) SA 776
(A) at 781 H-I.
[4]
See
Benson’s-case
above at 783 C-D and
ISEP
Structural Engineering and Planting (Pty) Ltd v Inland Exploration
Co (Pty) Ltd
1981 (4) SA 1
(A) at 5 E-H.
sino noindex
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